GG signs major road contracts for East Sepik, Milne Bay, Central provinces

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Contract signing between the State and China Overseas Engineering Group Company (COVEC) PNG Ltd, for the construction of 242km section of Magi Highway between Moreguina Junction (Central province) to Gadaisu (Milne Bay province). Picture supplied.

Governor-General Sir Bob Bofend Dadae has signed multi-billion-kina road contracts, marking a major boost to infrastructure development in Central, Milne Bay and East Sepik provinces.

The first contract covers the construction of a 242km section of the Magi Highway, from Moreguina Junction to Gadaisu, spanning Central and Milne Bay provinces. The scope of works includes engineering, procurement and financing.

Valued at K1.586 billion (inclusive of GST), the project will be fully funded by the National Government and delivered over an eight-year period.


The contract was awarded by the National Executive Council to China Overseas Engineering Group Company (COVEC) PNG Ltd.

COVEC representatives Wang Siguang and Yang Bo signed the agreement before the Governor-General, with the signing witnessed by the Secretary for Works and Highways, Gibson Holemba.

The second contract executed relates to the construction of the Wewak–Angoram Road along the Sepik Coastal Highway in East Sepik Province. Under the Connect PNG Program, the project involves the design and construction of an 87km section from Passam Junction to Angoram Station.

This contract is valued at K382.5 million, inclusive of 10 per cent GST, and will also be fully funded by the National Government. The project is scheduled for completion over 48 months.

The NEC approved the award of this contract to China Railway Construction Engineering Group (PNG). Company representatives Sam Jia and Klaus Jiang signed the agreement before the Governor-General, again witnessed by Mr Holemba.

The contract-signing ceremony was held at Government House and was attended by the Member for Angoram and Minister for Forests, Salio Waipo.

The projects form part of the Government’s broader commitment to improve national connectivity, economic access and service delivery through strategic road infrastructure investment.

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